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BRAC Bank PLC earned a record consolidated net profit of Tk 14.32 billion in 2024, securing a significant 73 per cent growth from Tk 8.28 billion in the year before, driven by substantial income from investments in government securities.

The third generation commercial bank’s consolidated earnings per share (EPS) stood at Tk 6.95 for the year, up from Tk 4.30 in the previous year.

The bank’s stand-alone net profit was Tk 12.14 billion, representing a 66 per cent increase from the previous year’s Tk 7.30 billion, the bank unveiled at a recent virtual earnings disclosure event for 2024 and the first quarter of 2025.

BRAC Bank’s Managing Director and CEO (Current Charge), Tareq Refat Ullah Khan, and other senior officials presented the financial results, operational achievements, and strength of the bank and outlined the Bank’s strategic focus for the future.

“Despite the stressed industry conditions, the BRAC Bank delivered strong balance sheet growth, significantly ahead of market average growth rates — with total deposits growing by 34 per cent and loans and advances increasing by 20 per cent,” reads the press release.

The bank’s loan portfolio grew by 20 per cent year-on-year, compared to average industry growth of around 7 per cent in 2024.

The bank’s standalone total deposits grew by 34 per cent year-on-year, compared to average industry growth of around 7 per cent.

The consolidated return on equity (RoE) and return on assets (RoA) stood at 19.80 per cent and 1.51 per cent respectively.

Total consolidated revenue increased by 39 per cent year-on-year in 2024, driven by higher net interest income resulting from loan growth, efficient fund management and higher non-funded income.

Total consolidated operating costs increased by 18 per cent compared to 2023 mainly driven by investment in people, technology and infrastructure to support its growth strategy.

The bank’s NPL (non-performing loans) reduced to 2.63 per cent in 2024 from 3.38 per cent in 2023 driven by initiatives in underwriting, monitoring and recovery.

Based on the profit growth, the board of directors declared a 25 per cent dividend (12.5 per cent cash and 12.5 per cent bonus shares) for 2024. This is also the highest dividend declaration since 2015. It had paid 25 per cent cash dividends for 2015.

Q1 financial performance

BRAC Bank’s first quarter consolidated net profit after tax (NPAT) stood at Tk 4.86 billion, an incredible 53 per cent year-over-year growth for January-March this year compared to the same period last year.

First quarter consolidated EPS grew to Tk 2.27 in Q1 2025 from Tk 1.54 in the corresponding quarter in the year before.

BRAC Bank’s standalone total deposit grew by 7 per cent in Q1 2025, showing strong alignment with its long-term growth strategy and customer confidence.

Its consolidated return on equity (RoE) and return on assets (RoA) stood at 19.93 per cent and 1.44 per cent respectively.

Total consolidated revenue increased by 28 per cent compared to the same quarter last year, driven by higher investment and non-funded income coupled with interest income.

The bank’s NPL ratio (non-performing loans) slightly moved up to 3.13 per cent in Q1 this year compared to 2.63 per cent in December 2024.

“Our success stands as a testament to our unwavering commitment to our customers, our community, and our country,” said Tareq Refat Ullah Khan, managing director of BRAC Bank and CEO (Current Charge), in a statement.

“Fuelled by the trust and confidence of our customers and stakeholders, we are poised to continue innovating, empowering, and contributing to the sustainable development of Bangladesh.”

“With consistent financial performance over the years, BRAC Bank is recognized by all stakeholders as a role-model for corporate governance, compliance & values-based banking in Bangladesh”.

The bank’s stock price rose 2.17 per cent to close at Tk 47 on Sunday on the Dhaka Stock Exchange.

https://today.thefinancialexpress.com.bd/stock-corporate/brac-banks-revenue-jumps-39pc-in-2024-1748804588

The Bangladesh Bank (BB) has barred 18 listed banks from paying dividends, citing their fragile financial health.

Despite repeated appeals from bank directors and top executives over the past month, the central bank held firm.

To the lenders, BB issued letters on May 21 that cited Section 22 of the Bank Company Act, 1991, which prohibits ailing lenders from distributing dividends. 

However, the banking regulator has allowed most of these banks to defer provisions against their non-performing loans (NPLs).

Contacted, Areif Hussain Khan, executive director and spokesperson of the central bank, said, “The banking regulator is strict with its decision that the banks that take deferral facilities for meeting their provision shortfall will not be allowed to pay dividends.”

This decision has cast uncertainty over the dividend declarations of AB Bank, Al-Arafah Islami Bank, Exim Bank, First Security Islami Bank, Global Islami Bank,  IFIC Bank, Islami Bank Bangladesh, Mercantile Bank, NRB Bank, NRB Commercial Bank, Premier Bank, Social Islami Bank, SBAC Bank, Southeast Bank, Standard Bank, Union Bank, United Commercial Bank, and the state-owned Rupali Bank.

Of the 36 banks listed on the stock market, only 18 managed to finalise their annual financial reports for the past year within the stipulated time.

ICB Islamic Bank and National Bank posted losses, while One Bank opted not to issue dividends despite recording a profit.

A letter seen by The Daily Star from the central bank said those banks do not have sufficient profit to fully meet their provision shortfall. As a result, financial statements for the year ending December 31, 2024, are to be prepared without adjusting for these deficits.

To overcome the shortfalls in provisions and capital, the central bank instructed the banks to submit realistic and time-bound action plans approved by their respective boards within a month, according to that central bank letter.

The letters also directed banks to clearly disclose the extent of their provision shortfall in their financial statements and stock market disclosures as of December 31, 2024.

The shortfall must be reflected in areas concerning provision maintenance, profit and loss calculations, and capital adequacy.

The central bank also said that any discrepancies between submitted information and audited financial statements would prompt action under the Bank Company Act.

Speaking on condition of anonymity, a senior official of Social Islami Bank, admitted the bank was not in a position to pay dividends.

“The banking regulator instructed the bank to show the actual provision shortfall in the disclosure for the stock market, but it would not be shown in the bank’s balance sheet,” he said.

“We will provide a five-year plan to the central bank to reduce the provision and capital shortfall,” the official added.

In March this year, the central bank issued new rules for dividend payouts. From 2024, banks that obtain provisioning deferrals are no longer allowed to issue dividends.

From next year, the bar will extend to any bank with NPLs more than 10 percent of its total portfolio.

Abdul Hai Sarkar, chairman of the Bangladesh Association of Banks (BAB), expressed concern over the BB decision.

He said that banks are running with the confidence of depositors, shareholders, and customers, but if they are not able to pay dividends, it will create a confidence crisis.

“We were trying to convince the central bank in various ways to withdraw the restriction, but the regulator did not listen,” he added.

Most banks, including those 18 market-listed lenders, failed to finalise their financial statements by the April 30 deadline due to insufficient provisioning.

With approval from the interim government, the central bank extended the deadline to May 31. 

An official from United Commercial Bank (UCB) told The Daily Star the bank had received a no-objection certificate from the regulator to complete its financial report. However, he said that paying dividends this year would be difficult.

Among the 36 listed banks, City Bank, BRAC Bank, Pubali Bank, Uttara Bank, Eastern Bank, Prime Bank, NCC Bank, Dutch-Bangla Bank, Mutual Trust Bank, Bank Asia, Jamuna Bank, Shahjalal Islami Bank, Trust Bank, and Midland Bank have declared dividends.

https://www.thedailystar.net/business/news/bb-bars-18-banks-dividend-payouts-3904226